Look Who Has the Highest Labor Force Participation Rate, Eh?

Lately, much has been made about Unemployment and Labor Participation Rates here domestically in the United States. With unemployment steadily ticking down from 10% at it peak to just 6.5% today, many point to the improving economy as a reason that the Unemployment Rate has been steadily improving. While it makes for good political theater, the reality is that we are suffering from an employment crisis in this country not seen in nearly 3 decades.

The problem we face, is that while unemployment has been creeping down, the number of those currently in the labor force has also come down. Frankly put, people who would like to work can’t. They are having a very difficult time finding work and keeping it. With the total duration of unemployment now at 101 weeks, that’s nearly 2 years of unemployment, one can hardly find a reason to celebrate 6.5% unemployment.

Now imagine if you will you are in a country like Italy. Italy has certainly had its struggles during the global recession like everyone else, but if you think we have it bad here, look what they are dealing with. With just about a 50% Labor Participation Rate, Italy’s unemployment has soared to almost 13% and appears headed much higher. In looking at the chart below, it appears that that trend is going nowhere but higher. Especially when you factor in the rest of the economic and social issues that the country is facing.

Makes you want to think about all the different ways that the Government keeps statistics on Unemployment and how they use it. Currently, we have the U-1,2,3,4,5,6 classifications depending on which narrative you are looking to exploit. Many would make an argument that if you truly wanted to gauge where unemployment stands today, you would just simply have to count those who are well, unemployed. Pretty simple concept. So why don’t we do it? Probably because our Unemployment would look like Italy’s.

Finally, I think one of the most effective ways of measuring employment is by looking at the Labor Participation Rate. Those who are in the work force who want to work and are fortunate enough to be working and can. I think it paints a much more complete picture of the employment landscape that we are facing. In doing so, I thought it would be interesting to look at Developed Nations Labor Participation Rates to see just how bad we have it. I guess it could be worse, at least we are second in terms of participation at around 64% and not Italy near 50%.

And who do you think has the highest Labor Force Participation Rate amongst the developed countries? The answer may surprise you eh...

Rome (AFP) - With a turnover of 53 billion euros ($73 billion) in 2013, the 'Ndrangheta mafia from southern Italy made more money last year than Deutsche Bank and McDonalds put together, a new study said Wednesday.

Sure it is. Because I "choose" to have to pay $4.00/gal for gas to drive to my work site. And I "choose" to pay my part-time helper $15/hr (plus Obamacare). And I "choose" to pay for liability insurance. And I "choose" to pay a lawyer $400/hr to write up a NDA & release from liability (that's only going to be tossed out--hey, what do you expect for only $400/hr).

The fact is most people really are better off sitting on their asses. If a job doesn't cover expenses, then who would invest in it? When I was unemployed, I could lose money slower by not moving (not driving, etc.). Why would I "work" if that only accelerated my losses? That's bad business--and stupid.

at least canada gubbermint gives a fuck about their people unlike the usa where the bankers and politicians hold you down and let the corporations and billionaires rape you nonstop until you're dead. Death by bunga!

As long as the Canadians have natural resources to rape they will be fine. If the USA attacked gia that way we would be called racist, evil, captialist, haters of the mother nature. But Canada can do it all day long and get a pass since they are special sorta like Russia. Environmental responsibilty is a cultural thing and the USA has bad culture so they are not allowed to act like Russia and Canada. If the USA attacked its natural resources like them we would be a major energy exporter.

As L'il Stevie Harper once said, the rest of the world seems to think that Canada should be a giant national park for them to come by and enjoy, occasionally. Well, sorry, we're going to build a country, and we're going to use what's here, from our trees to our minerals to our oil. Low-skill manufacturing has already left for Mexico and China; what are we supposed to do? Wait for Vlad to come and give us all a big cheque ('cause it's sure not gonna come from Bambam)?

You are so full of shit. Fifteen seconds on google to find out that there 1.3 million jobs in construction (which is anything from bathroom renovations to high rises) out of 17 million, or about 8%. "Most"?!

And whatever the number, no single number shows the additional damage due to underemployment and falling wages, not to mention lack of stability and benefits.

AND YET the highways are jammed, the mall parkings lots are full, and there is no more than a little muttering in dark places. If you had told anybody even twenty years ago that we'd have 6.5% unemployment and it would NOT be a crisis, they would have thought you nuts. If you had outlined the REAL situation today, they could not have imagined it - we are pressing on Depression era numbers. I guess that safety net kind of works, or else borrowing $18 trillion dollars kind of works ... until it doesn't.

Well, some more than others, since malls in general aren't doing the business they used to. And I include Target lots, I don't much go near Walmart lots by necessity and choice both - none in my area and fine by me.

I was at the Westfield Topanga mall this last weekend, which is one honkin' big mall and the parking lots were maybe 85% full, and the area is pretty much mixed incomes, within five miles you can find five million dollar homes or twenty illegals squatting in a twelve hundred square foot foreclosure or anything in between. Those at the mall were mostly from the upper half, at least. I can't speak to what if anything people were actually buying, other than that they made an effort to show up.

A friend of mine once observed that developed countries are unique in consistently putting everyone in the servant class on disability.

In the third world even small apartments have a tiny room for the maid.

No EBT cards for them. They have to work for a subsistence living. What a luxury to have a live in maid for 200 dollars per month. I am retiring in the third world where I can have a maid and a sugarbabe for less than 800 per month total.

If reliable stats were available, I'm sure North Korea would have the highest labor force participation. WORK! Or it's two to the back of the head. Plus, nothing like starvation to movitvate you back into the labor force.